What is the purpose of a Single Audit under the Uniform Guidance, and which funds require it?

• A. To ensure proper use of federal funds and compliance; required for entities expending $750,000+ in federal funds in a year.
• B. To audit only private foundation grants.
• C. To evaluate long-term capital planning.
• D. To verify compliance with state education standards.

Answer: (A)

The main idea here is that a Single Audit is the combined audit of financial statements and compliance with federal requirements for an organization that spends a substantial amount of federal funds in a year. The purpose is to ensure proper use of those funds and that the organization is following applicable federal program rules. Under the Uniform Guidance, the threshold is that the entity must have a single audit if it expends $750,000 or more in federal funds in a single fiscal year. This audit covers both the financial statements and compliance over major federal programs, and it typically results in a report submitted to the Federal Audit Clearinghouse.

This isn’t about private foundation grants only, it isn’t focused on long-term capital planning, and it doesn’t verify compliance with state education standards. Those elements fall outside the scope of the Single Audit, which is specifically tied to federal awards and their proper use and oversight.